Oil prices continue to decline on supply glut

Oil fell for a third day yesterday, extending its drop from the lowest close since 2009, as record supplies from Iraq and Russia bolstered speculation a global glut that drove crude into a bear market will persist.

Futures slid as much as 2.2% in London after losing 5.1% last week. Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, plans to boost crude exports to a record this month, the Oil Ministry said.

Russia’s output rose to a post-Soviet high in December, according to preliminary Energy Ministry data. Saudi Arabia will probably offer narrower discounts for crude to Asia for February, according to a Bloomberg survey. Brent slumped 48% last year, the most since the 2008 financial crisis, as Opec resisted calls to cut output amid a battle with US shale producers.